Analyze operational performance of diverse terminal facilities with normalized comparisons and gain insight to improve reliability, personnel, operating costs, maintenance, and tank integrity.
In today’s competitive market, it is a critical and difficult task to meet the regulatory standards of operational performance, while improving cost performance. The near-zero tolerance for environmental impacts has increased pressure to improve personnel training, inspection, and maintenance costs. Solomon's Worldwide Liquid Terminal Performance Analysis (Liquid Terminal Study) is designed to help liquid terminal facility operators improve operational performance, reduce costs, and maintain tank integrity sustainably.
We found ways to reduce tank integrity costs by over 340k USD. This is more than a 20% savings overall. STUDY PARTICIPANT
Companies that participate in Solomon’s Liquid Terminal Study typically realize 15–20% annual operating expense (OpEx) savings. Leverage a vetted, proprietary performance database of >800 terminals worldwide (includes all facility types: pipeline only, non-marine, and marine) and hundreds of terminal performance metrics.
- How does my performance compare; is it significantly different from others?
- How does my cost performance compare to other diverse terminals in my region?
- How do my tank integrity costs compare to competitors?
- How do my reliability and maintenance costs compare to the top performers?
- What is the value of closing my performance gaps compared to peers?
- How well am I operating the terminal facilities I have?
- Product Type (crude oil and refining/NGL products)
- Business Structure (integrated and logistic)
- Equivalent Terminal Complexity (ETC™)
- Deliveries
- Tank Storage Capacity
- Tank Turnovers
- Vapor Recovery/Combustion
- Terminal Type (transportation modes; receipt and distribution modes; pipeline-only, non-marine, and marine)
- Geographical Locations
- Marine Terminals
The Liquid Terminal Study segregates data into categories that most affect operational and financial performance of terminal facilities. The study then normalizes the data to provide an accurate comparison of diverse operations and better focus performance improvement efforts. This detailed analysis gives a true view of your competitive position and recommendations to improve performance in reliability, personnel effectiveness, operating expenditures (fixed and variable), energy cost and consumption, maintenance, equipment utilization, and tank integrity practices.
Solomon experts understand liquid terminal facilities can vary in size, complexity, receipt and delivery modes, liquid product type, terminal storage capacity, and throughput. To successfully compare operational performance between these diverse terminal facilities, operating data is analyzed using four divisors: storage capacity, deliveries, replacement value, and, more significantly ETC. ETC is the most reliable metric for comparing manageable non-volume-related expenditures (MNVE) between diverse facilities. The other divisors are unsatisfactory in some way.
Figure 1. Expenditure Comparisons, USD/bbl
Figure 2. Expenditure Comparisons, USD/k ETC
A delivery-based divisor will show high throughput pipeline-supplied terminals (Terminal A), are the best performers (Figure 1). Alternatively, Solomon’s ETC divisor will show the same Terminal A as only a third quartile performer with the throughput advantage removed (Figure 2.). Unlike other industry divisors, ETC normalizes measured terminal performance data, removing advantages between diverse terminal facilities. This comparison provides an equitable basis for comparing diverse terminal facilities and enables a more accurate identification of the areas where your terminal facility operations could improve.
Why Participate?
- Quantify performance improvement opportunities through a gap analysis.
- Compare liquid terminal facilities with diverse size, complexity, receipt and delivery modes, liquid product type, terminal storage capacity, and throughput.
- Maintain tank integrity while reducing costs.
- Compare performance at the terminal level and across geographic regions.
- Determine competitive industry position.
- Establish performance targets and measure progress.
- Assess future performance impact of planned capital improvements/modifications.
- Demonstrate performance/capability to financial institutions and security analysts.
Study Deliverables
Participants receive the following:
- Quantified gap analysis provided on OpEx, personnel cost, personnel work hours vs price, and energy.
- Study averages based on peer groups and performance rankings with quartile breakpoints.
- Executive summary presentation with actionable insight supported by study data.
- Customized diagnostic analysis, including conclusions, recommendations, and valued opportunity potential for each asset.
Performance is assessed across the following areas:
- OpEx
- Maintenance costs & equipment utilization
- Personnel effectiveness (cost & work hours)
- Reliability and safety
- Tank integrity practices and costs
- Capital Investment (CapEx)
- Energy costs and consumption
- MNVE
Frequently Asked Questions (FAQ)
A: The Worldwide Liquid Terminal Performance Analysis (Liquid Terminal Study) uses Solomon’s proprietary Comparative Performance Analysis™ (CPA™) methodology to provide a comprehensive and normalized assessment of terminal facility operational performance, improvement opportunities in the areas of tank integrity, reliability, maintenance costs, energy costs and consumption, personnel effectiveness, and OpEx.
A: ETC (Equivalent Terminal Complexity) is a regression analysis developed using a patented optimization analysis of the terminal complexity versus manageable non-volume-related expenditures (MNVE). ETC reliably predicts MNVE for any liquid terminal. ETC allows the comparison of diverse terminal facilities by normalizes advantages in measured terminal performance.
A: Solomon recently added sustainability metrics to assist your facilities in promoting strategies that support energy efficiency, emissions reductions, and decarbonization.
- Carbon Emissions Index (CEI) – Solomon has developed a Liquid Terminal Study CEI, a metric introduced in 2007 for the Solomon Fuels Study. CEI, the primary metric for GHG emissions, measures direct (Scope 1) and indirect (Scope 2) emissions. CEI considers electricity fuel mix, sources of thermal energy, gasoline and crude oil loading emissions, and vapor control methods as the foundations for GHG calculations.
- Energy Intensity Index™ (EII®) – The recognized gold standard used for measuring energy efficiency has been incorporated into the Solomon Liquid Terminal Study and Liquid Pipeline Study since 2019. Based on terminal throughput, EII adjusts for product type, thermal energy requirements, and utilizes modes of transportation to benchmark terminal energy efficiency.
A: The Liquid Terminal Study is open to all liquid terminal facilities, including any combination of marine and land-based terminals, product type (refined products, crude oil, petroleum products, chemicals, natural gas liquid, or liquefied petroleum gas), tank capacity, tank type, and tank count, and all receipt and distribution modes (road, rail, pipeline, marine–barge, tanker, single-point mooring).
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Learn How You Can Participate
Our commitment is to enable client success by delivering data-driven insight into operational excellence and help guide clients to take the steps necessary to accelerate the realization of benefits. The Liquid Terminal Study analyzes and compares your facilities performance at the terminal level and on an equitable basis with our patented methodology for normalizing diverse terminal performance data. The resulting analysis gives a true view of where you stand and provides insight to sustainably improve reliability, personnel costs and work hours, operating expenditures, energy cost and consumption, maintenance, and tank integrity. Join others who leverage the Liquid Terminal Study to guide them to higher levels of sustainable business performance and cost optimization.
Data Quality, Benchmarking Methodology
A Foundation for Effective Comparative Performance Analysis and Decision Support
We prioritize the integrity and confidentiality of participant-submitted data and rigorously review that data before benchmarking begins. Then, we employ our normalization process and benchmarking methodology to provide valuable and trusted peer group comparisons that deliver meaningful KPIs. Finally, our staff of senior consultants apply their deep industry experience to develop practical insight and recommendations to enable your success.
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